PVR share price: Why JM Financial sees 25% upside on this multiplex stock
The combination of a recovering box office, efficient operations, and strategic initiatives suggests potential undervaluation, aligning with JM Financial's 'Buy' recommendation and their target price of Rs 1,380.
- Aug 29, 2025,
- Updated Aug 29, 2025 11:23 AM IST
Shares of PVR Inox slipped 1 per cent in Friday’s trade to hit a day’s low of Rs 1,101.90. JM Financial maintained its ‘Buy’ rating on the stock with a target price of Rs 1,380, implying a potential upside of 25 per cent from current levels.
This decision comes as India's box office experiences a significant upswing. The Gross Box Office Collection (GBOC) in July was Rs 1,430 crore, marking a 50 per cent month-on-month increase and making it the year's best month so far.
The brokerage JM Financial said PVR Inox has witnessed a remarkable period with major releases such as "Coolie" and "War 2" in August, continuing the momentum from July's blockbusters like "Jurassic World Rebirth." These releases have significantly contributed to the growing box office numbers, indicating a robust recovery post-pandemic. The management's target of 15 crore admissions for FY26 seems increasingly attainable with this trend.
The global box office is also on a trajectory to reach USD 34.9 billion in 2025, a 14 per cent year-on-year increase. This reflects a rebound to pre-pandemic levels of admissions, bolstered by a decline in direct-to-OTT releases from 33 per cent in 2022 to 12 per cent projected for 2024. This trend underscores the renewed economic importance of theatrical releases, a positive sign for cinema chains like PVR Inox, JM Financial said.
JM Financial noted that the company's asset-light model transition has been a critical factor in its improved financial performance. In FY25, PVR Inox reduced its capital expenditure by approximately 50 per cent year-on-year, from Rs 630 crore in FY24 to Rs 330 crore. This strategic shift, alongside a net debt reduction of Rs 350 crore, underscores the company's strong operational discipline.
Despite a challenging FY25 with muted box office admissions of 13.69 crore, down from 15.14 crore in FY24, PVR Inox has implemented successful initiatives to maintain footfalls. These include discounted days, re-releases, alternative content, and the Rs 99 weekday menu. Such measures have helped sustain occupancy rates amid content lulls, reflecting the company's adaptive strategies to market challenges, the brokerage said.
PVR Inox's current market valuations present an opportunity, as reflected by its FCF yield above historical averages. The combination of a recovering box office, efficient operations, and strategic initiatives suggests potential undervaluation, aligning with JM Financial's 'Buy' recommendation and their target price of Rs 1,380.
Shares of PVR Inox slipped 1 per cent in Friday’s trade to hit a day’s low of Rs 1,101.90. JM Financial maintained its ‘Buy’ rating on the stock with a target price of Rs 1,380, implying a potential upside of 25 per cent from current levels.
This decision comes as India's box office experiences a significant upswing. The Gross Box Office Collection (GBOC) in July was Rs 1,430 crore, marking a 50 per cent month-on-month increase and making it the year's best month so far.
The brokerage JM Financial said PVR Inox has witnessed a remarkable period with major releases such as "Coolie" and "War 2" in August, continuing the momentum from July's blockbusters like "Jurassic World Rebirth." These releases have significantly contributed to the growing box office numbers, indicating a robust recovery post-pandemic. The management's target of 15 crore admissions for FY26 seems increasingly attainable with this trend.
The global box office is also on a trajectory to reach USD 34.9 billion in 2025, a 14 per cent year-on-year increase. This reflects a rebound to pre-pandemic levels of admissions, bolstered by a decline in direct-to-OTT releases from 33 per cent in 2022 to 12 per cent projected for 2024. This trend underscores the renewed economic importance of theatrical releases, a positive sign for cinema chains like PVR Inox, JM Financial said.
JM Financial noted that the company's asset-light model transition has been a critical factor in its improved financial performance. In FY25, PVR Inox reduced its capital expenditure by approximately 50 per cent year-on-year, from Rs 630 crore in FY24 to Rs 330 crore. This strategic shift, alongside a net debt reduction of Rs 350 crore, underscores the company's strong operational discipline.
Despite a challenging FY25 with muted box office admissions of 13.69 crore, down from 15.14 crore in FY24, PVR Inox has implemented successful initiatives to maintain footfalls. These include discounted days, re-releases, alternative content, and the Rs 99 weekday menu. Such measures have helped sustain occupancy rates amid content lulls, reflecting the company's adaptive strategies to market challenges, the brokerage said.
PVR Inox's current market valuations present an opportunity, as reflected by its FCF yield above historical averages. The combination of a recovering box office, efficient operations, and strategic initiatives suggests potential undervaluation, aligning with JM Financial's 'Buy' recommendation and their target price of Rs 1,380.